What East Africa's Digital Services Tax Actually Means for Startups
A SaaS company selling subscriptions into Kenya, Uganda, and Tanzania isn't dealing with one digital tax regime. It's dealing with three, each with a different rate, a different tax base, and a different filing deadline, and each one has changed at least once in the past three years. What counts as compliant in Nairobi can leave the same company exposed in Kampala or Dar es Salaam. Here's what each country actually requires right now, and what it means if your startup operates, or sells, across more than one of them. Kenya: From a Flat Digital Tax to a Broader "Presence" Test Kenya no longer has a Digital Service Tax. It was repealed at the end of 2024 and replaced with something more far-reaching: the Significant Economic Presence Tax (SEPT) , introduced under the Tax Laws (Amendment) Act, 2024. Under SEPT, the Kenya Revenue Authority deems 10% of a non-resident company's gross Kenyan turnover to be taxable profit, then applies the standard 30% corporate ra...
